Arizona Laws 44-1378.01. Applicability
A. This article does not apply to:
Terms Used In Arizona Laws 44-1378.01
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Foreclosure consultant: means a person who, directly or indirectly, makes any solicitation, representation or offer to a homeowner to perform for compensation or who, for compensation, performs any covered service that the person represents will do any of the following:
(a) Prevent or postpone a foreclosure sale. See Arizona Laws 44-1378
- Grantee: includes every person to whom an estate or interest in real property passes, in or by a deed. See Arizona Laws 1-215
- Holder of evidence of debt: means the person in actual possession of or otherwise entitled to enforce an evidence of debt but does not include a person acting as a nominee solely for the purpose of holding the evidence of debt or deed of trust as an electronic registry without any authority to enforce the evidence of debt or deed of trust. See Arizona Laws 44-1378
- Homeowner: means the record owner of a residence in foreclosure at the time the notice of the pendency of an action for foreclosure or the recording of a notice of sale pursuant to section 33-808. See Arizona Laws 44-1378
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Person: means an individual, corporation, partnership, association, joint stock company or trust, limited liability company, government or governmental subdivision or agency or any other unincorporated organization. See Arizona Laws 44-1801
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Residence in foreclosure: means residential real property consisting of not more than four family dwelling units, one of which the homeowner occupies as a principal place of residence, and against which there is recorded an outstanding notice of the pendency of an action for foreclosure or notice of sale pursuant to section 33-808. See Arizona Laws 44-1378
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Trustee: A person or institution holding and administering property in trust.
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
1. A person licensed to practice law in this state, while performing any activity related to the person’s attorney-client relationship with a homeowner or with the beneficiary, mortgagee, grantee or holder of any lien being enforced by foreclosure.
2. A holder or servicer of an evidence of debt or the attorney for the holder or servicer of an evidence of debt secured by a deed of trust or other lien on any residence in foreclosure while the person performs services in connection with the evidence of debt, lien, deed of trust or other lien securing the debt. For the purposes of this paragraph, the following persons are presumed to be the holder of evidence of debt:
(a) The person who is the obligee of and who is in possession of an original evidence of debt.
(b) The person in possession of an original evidence of debt together with the proper endorsement or assignment.
(c) The person in possession of a negotiable instrument evidencing a debt that has been duly negotiated to the person or to bearer or endorsed in blank.
(d) The person in possession of an evidence of debt with authority, which may be granted by the original evidence of debt or deed of trust, to enforce the evidence of debt as agent, nominee or trustee or in a similar capacity for the obligee of the evidence of debt.
3. A person doing business under any law of this state or the United States that regulates banks, trust companies, savings and loan associations, credit unions, insurance companies, title insurers, insurance producers or escrow companies authorized to conduct business in this state, while the person performs services as part of the person’s normal business activities, or an affiliate or subsidiary, or an employee or agent acting on behalf of, any of the foregoing.
4. A person originating or closing a loan in the person’s normal course of business if any of the following is true:
(a) The loan is subject to the requirements of the real estate settlement procedures act of 1974 (P.L. 93-533; 88 Stat. 1724; 12 United States Code §§ 2601 through 2617).
(b) With respect to any second mortgage or home equity line of credit, the loan is subordinate to and closed simultaneously with a qualified first mortgage loan under subdivision (a) of this paragraph or is initially payable on the face of the note or contract to an entity included in paragraph 3.
(c) The loan is recorded in the real property records of the clerk and recorder of the county where the residence in foreclosure is located and the legal action giving rise to the judgment was commenced before the notice of election and demand for sale.
5. A title insurance company or title insurance agent authorized to conduct business in this state while performing title insurance and settlement services.
6. A person licensed as a real estate broker or real estate salesperson under Title 32, Chapter 20 while the person engages in any activity for which the person is licensed.
7. A nonprofit organization that is exempt from taxation under section 501(c)(3) of the internal revenue code and that solely offers counseling or advice to homeowners in foreclosure or loan default, unless the organization is an associate of the foreclosure consultant.
8. An individual or entity working with the homeowners in foreclosure to purchase the residence in foreclosure through a short sale provided that the individual or entity does not claim, demand, charge, collect or receive any compensation for the transaction.
B. Nothing in this chapter shall be construed as authorizing conduct for which a license would be required under Title 6, Chapter 9, Article 4.